Is Potbelly Corp. overvalued or undervalued?

As of 20 June 2025, Potbelly Corp. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 10, an EV to EBITDA of 17.36, and a ROE of 75.69%.
In comparison to its peers, Potbelly's P/E ratio of 10 is significantly lower than BJ's Restaurants, Inc., which has a P/E of 44.62, indicating that Potbelly may be undervalued relative to this competitor. However, it is also higher than Carrols Restaurant Group, Inc., which has a P/E of 15.07, suggesting a mixed valuation landscape within the industry. Notably, Potbelly has outperformed the S&P 500 over various time frames, including a 1-year return of 63.54% compared to the index's 10.26%, reinforcing its competitive position in the market.